Image you have a goose that lays golden eggs. You could just keep selling the eggs every year but somebody comes up to you and offers you 2 billion dollars now

Image you have a goose that lays golden eggs. You could just keep selling the eggs every year but somebody comes up to you and offers you 2 billion dollars now and the public market values your golden egg business at 1.5 billion dollars so it seems fair. It turns out that if you kill the goose there's a cache of 3 billion dollars worth of eggs within it. The goose is gone and everybody made money off of it's demise. --- PE (not always) is effective at finding under-valued companies and ensuring that they record the value on the PE's books.